Changpeng Zhao (CZ) built the world’s biggest crypto exchange. But he says his biggest mistake had nothing to do with technology.
The Binance executive told the Talking Tokens Podcast that he underestimated law, compliance, and politics. Looking back, he wishes he had learned the rules first.
He Was Just a Tech Guy
Zhao spoke on the Talking Tokens podcast, nine years after Binance began. He started the exchange in 2017 and reached the top within months.
Then came a simple question. What would he tell his 2017 self? He pointed to the law.
“Before like 2017, I was just a tech guy. I was focused on building a better product and protect the users, but I think I misjudged the importance of the legal aspects of it, which is a weak area for me.”
Follow us on X to get the latest news as it happens
CZ’s Biggest Mistake Was Not the Product
Zhao knew how to build products. He did not know the law. That became a problem as Binance grew worldwide.
“I wasn’t very knowledgeable on international laws and how different countries apply laws. Some US laws apply globally. Some. And they also have a very long look back period.”
That gap cost him. His 2023 guilty plea forced Binance to pay $4.3 billion. It was one of the biggest corporate fines in US history.
Zhao stepped down as CEO. He paid a $50 million fine. He served four months in prison.
CZ Also Wishes He Moved Faster
The Binance executive had a second regret. He moved too slowly. He says founders should ship early and learn from real users.
CZ said it is “much better to push a product out early and then have market feedback.”
He used Binance’s own futures launch as an example. “Binance launched futures two years into the journey. If I was to do it again, I would probably launch that much earlier,” he said.
Still, Zhao called this advice, not just hindsight. He now tells other founders to take the law seriously. He even warned Hyperliquid that it needs good lawyers.
His own case ended in 2025 with a presidential pardon. That came about a year after his release from prison. Today he advises governments on crypto policy. It is the very field he once ignored.
Bitrue